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ECONOMICS > Consortium wins Istanbul airport tender for 22.1 billion euros

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The tender for the build-operate-transfer project, which is to be conducted in four stages, will be for a 25-year lease. DHA photo

The tender for the build-operate-transfer project, which is to be conducted in four stages, will be for a 25-year lease. DHA photo

The Cengiz-Kolin-Limak-Mapa-Kalyon Consortium, a joint venture of Turkish companies, has won a tender for a controversial third airport in Istanbul, promising to pay the government 22.1 billion euros for 25 years starting from 2017.

Seventeen groups qualified to enter the tender, but only four -TAV, IC-Fraport Consortium, Cengiz-Kolin-Limak-Mapa-Kalyon Consortium and Makyol İnşaat-showed up at today's bidding session.

IC-Fraport Consortium, the last competitor of the winning consortium, and TAV withdrew from the race at 22.1 billion euros, following Makyol İnşaat, which quited in an earlier phase.

From the closed envelopes, IC-Fraport had offered 20 billion euros (tax excluded) for the 25-year lease, Cengiz-Kolin-Limak-Mapa-Kalyon had given 12.7 billion euros, TAV had given 9 billion euros, while Makyol had given a moderate 4 billion euros before withdrawing from the tender.

Fifteen Turkish and two foreign companies had bought for Istanbul’s third airport, which was valued at more than 7 billion euros ($9 billion) by Turkish Transport Minister Binali Yıldırım. Many of Turkey’s leading companies, including Enka, Doğuş and Sabancı Holding, and two foreign companies, Malesian Khazanah Nasional Beerhad and India-based GMR Infrastructure, did not submit their bids although they bought the specification, the Anatolian News Agency reported.

In order to spark competition for the third airport, the Transportation Ministry introduced some amendments to the specifications last week. The changes made in the specifications included lifting the three-company limit for consortiums and the requirement that a dominant partner own a 51 percent share.

The tender for the build-operate-transfer project, which is to be conducted in four stages, will be for a 25-year lease, with the cooperation of the private and public sectors. The state will guarantee the amount of passengers and tariff levels for a certain amount of time.

Following the finalization of the tender approval, the first phase of construction is set to be after 42 months, in 2017, and will provide an initial capacity of 90 million passengers a year. Once all six of the planned runways are complete, the capacity is expected to increase to 150 million passengers, the world’s largest in terms of the passenger capacity at full capacity. The airport is planned to provide jobs for 100,000 people, the Minister Binali Yıldırım said earlier.

A total of six runways, 16 taxiways, 165 aircraft passenger bridges at all terminals and 6,5 million square meter apron with 500 aircraft parking capacity among other facilities will be constructed.

The new airport is planned to be constructed at the Istanbul’s European side between the Black Sea regions of Yeniköy and Akpınar, on an area of 7,659 hectares. Some 6,172 hectares of this area is forest land.

The Environmental Impact Assessment’s (ÇED) report for the 3rd airport project in Istanbul said last April the total number of trees in the area is 2,513,341 and 657,950 of them will need to be cut indispensably while 1,855,391 of the trees will be moved to new places. However the exact number of the trees to be cut and moved will be revealed after the airport’s project is completed, the Forestry Ministry told the Hürriyet Daily News.

And the tender has been taken to court by the head office of the Turkish Chamber of Environmental Engineers (ÇMO) on the grounds that the project violated the existing legislation for the environmental impact assessment (ÇED) report preparation.

May/03/2013

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Brian Irlanda

5/6/2013 2:20:24 PM

To transplant even one mature tree is next to impossible. Even transplanting seedlings will result in 60% mortality. It would be easier to successfully build a space station on Mars than transplant 1.85 million trees. This is a fairytale story. Are people really stupid enough to believe it? If there is an empty space available to transplant nearly 2 million trees can they not build the airport there? :-)

cezer "çapulcu" skonore

5/4/2013 5:05:44 PM

Tekion Par.: 21B Euros is what the contractors pay to the Government for 25-year rent. Airport will cost 10B Euros or so. They are expected to make 300-400M USD per year profit during 25 years (from passenger and landing fees and assuming every year 5% passenger growth), which is a small money. There are 1.5M trees in the construction area to be moved. My guess they can move only 10% of those trees for this money. I am expecting a cheap construction along with destruction of Nature at the end.

Blue Dotterel

5/4/2013 12:17:17 PM

The canal might run alongside the airport towards Buyukcekmece. The bulk of the new city (pop, at least 1 million) will probably be built on the Akpinar side. The motorway extending from the bridge will go to the new city, canal and airport, and, of course, extend to Europe. As with the Black Sea highway, it will uglify the coast line in line with the AKP's environmental and aesthetic incapacity. Unless they actually learned something from the BS tragedy. Not very likely.

Peter Stout

5/4/2013 12:02:40 PM

They changed the tender rules last week so this consortium could win?

two sides to every coin

5/4/2013 8:52:12 AM

HOW MUCH. this seems a tad too many billions being spent, but hey how many back pockets have to be filled with Lira.

Chris Green

5/4/2013 12:43:49 AM

The winning bid commits an awful lot of money - it was a very aggressive bid as my industry contacts (Turkish) are discussing elsewhere. My gut feeling is that TAV probably tabled a realistic bid but nevertheless,the tender process has been gone through and let us hope the project turns out to be an outstanding success. No one should underestimate the enormity of this undertaking. Istanbul is reinforced as the trading hub of the world, in my opinion.

dogan kemal ileri

5/3/2013 7:39:55 PM

Fantastic infrastructure project which Istanbul needs to secure its position as an aviation hub.Good luck Turkiye and well done the AKP government and Tayyip Erdogan and like Chris Green I am also pleased that it was a Turkish consortium which won the tender to build .

Tekion Particle

5/3/2013 6:49:43 PM

21 bln is a lot of Euros. Where are they building it on the moon? The Hong Kong airport was built on an island that had to be built artificially and had many engineering challenges and that did not cost that much. How much of that money is the real cost of building the airport? How much of that taxpayers money will find its way back to the pockets of the masters who have awarded the contract? Wake up people you are being robbed.

Chris Green

5/3/2013 4:59:06 PM

I am very pleased to see that it is a Turkish consortium that has won this hugely prestigious and truly historic tender because there was a lot of outside interest not least from the USA. I had privately hoped that TAV would prevail having had positive experience with them from my time at Ataturk A/P three years ago but nevertheless, this is great news for Turkey and the internal market too.
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